Disney+ to Roll Out Cheaper, Ad-Supported Subscription

Disney has set a goal of having 230 million to 260 million Disney+ subscribers by fiscal 2024.

Photo: Katie Collins/Zuma Press

Walt Disney Co. DIS -3.69% said it is rolling out a cheaper, ad-supported subscription offering for its Disney+ streaming platform in the U.S. beginning in late 2022.

“Expanding access to Disney+ to a broader audience at a lower price point is a win for everyone—consumers, advertisers, and our storytellers,” said Kareem Daniel, chairman of Disney Media and Entertainment Distribution.

The company didn’t share pricing details for the ad-supported subscription, or say when exactly it will launch. Disney+ currently costs $7.99 a month and doesn’t show ads. The company said it would continue to offer a version without ads.

Disney said it plans to expand its ad-supported version of Disney+ internationally in 2023.

The company said the new offering is a building block in Disney’s goal to reach 230 million to 260 million Disney+ subscribers by fiscal 2024.

Disney-owned Hulu already offers an ad-supported version at $6.99 a month, compared with $12.99 a month for no ads.

The move follows streaming services such as NBCUniversal’s Peacock, Paramount Global’s Paramount+, Discovery’s Discovery+ and WarnerMedia’s HBO Max, all of which already offer cheaper ad-supported subscriptions in addition to more expensive, ad-free tiers.

Netflix Inc. and Apple Inc. don’t offer cheaper, ad-supported versions of their streaming platforms.

The launch of Disney+ has brought a bit of magic to a company whose stock had taken a nosedive after the coronavirus shut down theme parks and movie theaters. WSJ explains how Disney’s streaming platform has become a top competitor in an already crowded field. Photo illustration: Jacob Reynolds/WSJ

Write to Will Feuer at [email protected]

This post first appeared on wsj.com